US Equity ETFs Dominate Flows In Nov

Investors poured more than $26 billion into U.S.-listed ETFs in November, the majority of which landed in U.S. equity funds.

In recent months, appetite for U.S. stock exposure has been strong among ETF investors despite the fact that the S&P 500 is up merely 1% year-to-date. It seems that concerns about the global economy—renewed after the terrorist attacks in Paris last month—sluggish commodities prices and a slowdown in China have investors focused on the domestic front.

So far this year, more than $201 billion has flowed into U.S.-listed ETFs, putting within reach 2014’s asset-gathering record of $243 billion if December sees strong creations.

November also saw a complete reversal in demand for U.S. fixed-income ETFs. Last month, the asset class bled a net of $433 million in assets. Just a month prior, U.S. fixed income was the most popular ETF segment, raking in more than $11 billion.

As the market anticipates the Federal Reserve’s first interest-rate hike in some seven years, some of the biggest redemptions in November were funds tapping into various spots on the Treasury yield curve, from one- to three-month, the one- to three-year, the seven-to 10-year and 20+ years.